The present invention relates generally to administering a program to provide for home mortgage payments, a trust fund, and a cash reserve payable at some point in time during the mortgage period. The funding for the trust comes substantially from income tax savings associated with home mortgage deductions.
Generally, low income families experience difficulty in purchasing a home and providing a college savings fund. Many factors over and above the lack of monetary funds contribute to this problem. Investing and investing programs are generally tailored to the higher income family. Therefore, there are few available methods or systems to help facilitate owning a home and creating a college savings fund. Furthermore, lower income families generally have a higher immediate need for their take-home income. This need often results in economic decisions which are counter to prudent investment principles. In short, when money is tight, it is often very easy to overlook the future for the short term.
Given the lack of investment methods or systems for low income families, these families often have to choose between a home or savings for their children's education or do without both. When the parents neglect to save for their children's college education, the likelihood of the children being able to attend college significantly decreases. When the children don't attend college, the likelihood of another low income generation is also greatly enhanced. However, it is not difficult to understand how these families choose to buy a home when home ownership is such a staple in the American society.
The parents in these families should also consider their own future. Many families, especially those of lower means, neglect to adequately prepare for retirement. Therefore, it is of equal necessity, not only to prepare for college and buy a home, but to secure a retirement fund for the family's later years.
Thus, there remains a need for a new method or system to provide a mechanism to facilitate home ownership, college savings, and a retirement fund in an economical and affordable way without significantly affecting the family's standard of living.